As the NA session begins, the USD is the strongest and the JPY is the weakest. Overnight the UK CPI came in ahead of expectations as inflation continued to pick up. Food and non-beverages posted the highest rate of increase since August 1977 at 19.1%. The headline rate is above 10% at 10.1%. Expectations are for a decrease of 9.8%. Deutsche Bank sees two more increases to 4.75%.
The GBPUSD rose on the announcement and in the process extended above the 200 and 100 moving averages (green and blue lines in the chart above). However, the price has changed downwards. Fears of a slowdown in the UK and slower growth ahead (as the BOE continues), or fears that the US will see similar expansion to keep the Fed the game, it can be wrong. Technically, the price fell on the MAs and buyers were forced to sell more. The UK 10-year yield rose 10.4 bps today. US yields are higher (by 4.6 bps).
The ECB’s Lane said overnight that if the basic pattern continues it is likely to raise rates again. ECB’s Wunsch said the next rate decision will be between 25 basis points and 50 basis points.
In US real estate news, Redfin reports that US home prices fell -3.3% in March, the largest monthly decline since March 2012. mortgage demand -8.8% in weekly mortgage data. The 30-year mortgage rose to 6.43% from 6.3% last week.
A picture of other markets is shown here:
Private inventory data showed last night that crude oil inventories fell -2.675M barrels in crude oil inventories fell -1M barrels. Expectations for today’s data to be released at 10:30 AM ET are for a draw of -1.088 million for crude and -1.267M for oil.
- Bitcoin fell below the $30,000 level and traded at $29,246. As of 5 PM yesterday, the digital currency was trading around $30,440.
In the premarket for US stocks, the majority instructions
Retail sales information is an index that measures a retail market or a segment of the retail market. These tools are very valuable because they help compare current price levels with past prices to calculate market performance. For example, investors can invest in a market index by buying an index fund, organized as a mutual fund or an exchange-traded fund, and track.
Market intelligence reports show a number that measures a market or a segment of the market. These tools are very valuable because they help compare current price levels with past prices to calculate market performance. For example, investors can invest in a market index by buying an index fund, organized as a mutual fund or an exchange-traded fund, and track.
trading low after closing a small/mixed exchange yesterday:
- The Dow Jones industrial average -134 points after yesterday’s decrease of -10.55 points
- S&P index -25.8 points after rising 3.55 points yesterday
- NASDAQ index -99 points after yesterday -4.31 points less
In the European equity markets the German Dax and UK FTSE 100 are moving down. Spain and Italy are higher:
- German Dax -0.22%
- France CAC -0.07%
- UK FTSE 100 -0.23%
- Spain’s IMAX rose 0.14%
- Italy’s FTSE MIB +0.08%
in Asia-Pacific markets:
- Nikkei 225 -0.18%
- Hong Kong’s Hang Seng Index -1.37%
- China’s Shanghai Composite Index -0.68%
- Australia’s S&P/ASX Index +0.07%
In the US credit market, yields are higher across the board in response to our global inflation expectations. The Feds Bullard said yesterday that he is targeting a final rate of 5.75% because inflation is a concern:
- 2 year yield 4.267% +618 principal
- 5 year yield 3.734% + 6.0 principal
- 10 year yield 3.617% + 4.6 principal
- 30 year yield 3.814% + 2.6 principal
In the European debt market, the 10-year benchmark is higher with the UK yield leading the way to 10.4 basis points: